Arabian Drilling posts 73% rise in H1 2022 profit to SAR 207.7 mln

Arabian Drilling Co. (ADC), which operates rigs in the Saudi-Kuwaiti Neutral Zone, reported a 73% profit leap to SAR 207.7 million in the first half of 2022, compared to SAR 119.8 million in the year-earlier period.

The profit growth was driven by a 19% rise year-on-year (YoY) in revenue to SAR 1.251 billion. Gross profit margins reached 28%, up from 20% in H1 2021. The company also generated finance income of SAR 6.2 million.

The higher profit came despite a decline in other revenue, as well as increased finance costs and Zakat and income tax provisions.

Shareholders’ equity, after minority interest, rose to SAR 4.366 billion as of June 30, 2022, from SAR 4.191 billion a year earlier.

ADC’s revenue from the onshore segment rose from SAR 1.874 billion by the end of 2020 to SAR 1.643 billion last year. The segment accounted for 75% of the group’s total revenue in the current period.

Revenue from the offshore business reached SAR 552.5 million by the end of 2021, compared to SAR 653.5 million a year earlier. The segment made up 25% of the group’s total revenue in the current period.

Other segments contributed SAR 173.7 million to revenue by the end of 2021, compared to SAR 187.7 million in 2020. They represented 8% of ADC’s total revenue in the current period.

For revenue by customer, ADC’s top line from Saudi Aramco’s contracts decreased to SAR 1.191 billion by the end of 2021, from SAR 1.507 billion a year earlier. The segment made up 54% of the group’s total revenue in the current period.

Revenue from contracts concluded with Schlumberger S.A. rose to SAR 860 million, from SAR 883.5 million in 2020, accounting for 39% of the group’s total revenue in the current period.

Al-Khafji Joint Operations (KJO) delivered revenue of SAR 139.3 million by the end of 2021, compared to SAR 133.4 million a year earlier, representing 6% of ADC’s revenue for H1 2022.

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